Do any universities rent out dorms or apartments? I have a group of college kids I am trying to find inexpensive accomodations for in August, and am inneed of help.

couchsurfing.com

Columbia says it only makes rooms available for students taking summer classes there.

NYU says it does allow non students, but I don't know if they rent out by the day week or only for the whole summer http://www.nyu.edu/summer/housing/

There is a popular youth hostel on the Upper West Side

Try Jazz On The Town

If you go to Hosteling International they have a branch near Columbia University (103rd and Amsterdam). It's right by 2 subway lines and there are lots of good inexpensive restaurants nearby.

I believe that a bed in a dorm room (8 or 10 people) with locker is about $40 per night.

There's no way you'll get NYU housing for part of the summer. When I did it my senior year in college, we had to fax in our applications at 8 AM the morning that they started accepting. Even then, it was still 800 per week, so not exactly a bargain. The dorms fill up in about a minute.

Eek - let me amend...NYU was 800 per month, not week! Sorry!

I was just in NYC and stayed in a hostel called Broadway. It was pretty nice and pretty cheap ($20/night). It was a really nice location also. Other than that you could try CouchSurfing.com but I am a part of the network and it is somewhat harder to find people to stay with in NYC compared to some other places.

You can read about my stay at the hostel at www.brownvanman.wordpress.com

hostelz.com has a decent search engine and reviews for hostels. You won't find rooms at the universities for part of the summer as others have said.

You should check out rates at the various YMCAs and YMHAs in NYC. The Vanderbilt YMCA does offer monthly rates for students and others. These are pretty cheap by NYC standards and they are generally in good locations.

Couchsurfing.com is not a viable option for overnight accommodations for the vast majority of people. It's a kind of barter system that people who want to travel cheaply within an organized network of members uses. But it's silly to keep offering it as a real option for budget travel. This is a very specialized and unusual way to travel.

Agree that couchsurfing may work for individual college students traveling on the supercheal - if they can offer similar. But it WILL not work for groups of anything.

Big Apple Hostel gets good reviews and the location near Times Square, is close to a lot.

Actually Times Square is really only close to Times Square - and a lot of theaters. It's mainly a business district. And the restaurants there tend to be expensive and or have poor food or both. (There are exceptions but it's not a good eating area - and really not that handy for major sights.)

While that generalization may be "somewhat true" about actual "in" Times Square restaurants, it really IS close to a lot besides Times Square itself.
Just two blocks away is the Ninth Avenue/Hell's Kitchen 'restaurant row' with at least 100 good to very good inexpensive to moderate restaurants of all types. It's my favorite concentrated area of restaurants in the entire city. And although I'm far from being a college kids, they really seem to love the area for restaurants as well.

Sorry, for some reason I did not get that it was a group even though it is clearly mentioned.
For a single traveler, couchsurfing is a wonderful way to travel inexpensively.
I have not looked at NYC, but for Europe it is a awesome.

Just as an FYI - It's not really a barter or reciprical system at all.
It is a world community of travel enthusiasts.
Many people are active members who are unable to host. You can be an active community participant without offering up a room or couch.
I met with a group of them in Berlin and most seem to be like frequent-Fodorites. People who love travel and new experiences. Some of these people have accomodations to share and some don't... no big whoop. You can list yourself as a resource for your city, or someone to have dinner with, whatever.
It is a real option.